So let me get this straight.... the people who are in dire straights are people, who in the middle of a pandemic and massive housing increases, sought out advice from the BoC on if they should buy a house, and then did so based solely on that advice. Then even though rates were literally bottom barrel, they thought variable was the correct was to go instead of a long term fixed rate, locking in that historically low bottom barrel rate?
Did any of us here do anything like that thinking "oh man, the BoC said that, so were golden, all in baby! No reason to worry about anything, were in the middle of a pandemic though so nothing could go wrong. Hell, lets get some HELOC's and LOC's and buy some cars!". Is that all it took? People were doing it anyways, they felt left out of the housing increases and where they were really lied to is that "housing always goes up, can't go wrong", then bought a $1mil house in ON.
Who in their right mind thought any of this was sustainable? And then to blame the BoC for not predicting the future?
Hell, I know when I bought my house, I sure didn't look up to see what the BoC thought was going to happen in order to make my decision. Certainly looked at many factors, went fixed, ended up paying about 0.5% more than if I stuck with variable, but hey, I'm not a risk taker.
Even as inflation and rates were going up, people were still recommending that variable rate is always better, in fact some never did switch to recommending fixed. And these are the people who are actually giving people mortgages, so where's the uproar over them? Or are we going to keep blaming the BoC like somehow they were the pariah of advice that everyone goes to for making their decisions.
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